12 June 2002

EP adopted Recommendation on Insurance Mediation

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The European Parliament approved the Common Position on Insurance Mediation which takes on board Parliament's concerns made in the first reading relating to professional qualification, registration and insurance agents together with a number of amendments designed to clarify the text.

One of these states that the register of intermediaries must indicate the country or countries in which the intermediary conducts business. Another that the validity of the registration will be subject to a regular review by the competent authority. In addition, Member States may provide that those persons who exercised a mediation activity before September 2000, who were entered in a register and who had a level of training and experience similar to the required by the Directive, will be automatically entered in the register once the requirements in this directive are complied with.

The directive will create a common market for insurance mediation. A broker registered in one country will be able to provide services in other Member States. The text establishes common rules for registration i.e. adequate experience and knowledge, good reputation, financial capacity and to be in possession of indemnity insurance. Once registered in a Member State, intermediaries will be able to provide services or establish themselves elsewhere in the Union. It also guarantees a high level of protection of clients. The directive, part of the Financial Services Action Plan, will apply as from 31 December 2003.

Adopted recommendation for second reading

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